Investment performance review second quarter 2001 july 11 2001 sei advisor network
This presentation is the property of its rightful owner.
Sponsored Links
1 / 18

Investment Performance Review Second Quarter 2001 July 11, 2001 SEI Advisor Network PowerPoint PPT Presentation


  • 97 Views
  • Uploaded on
  • Presentation posted in: General

Investment Performance Review Second Quarter 2001 July 11, 2001 SEI Advisor Network. Today’s Agenda. Market and SEI Performance Overview for 2nd Qtr Recent Enhancements to SEI ’s Implementation Strategy Presentation of Advisor Tool Kit Questions & Answers.

Download Presentation

Investment Performance Review Second Quarter 2001 July 11, 2001 SEI Advisor Network

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Investment performance review second quarter 2001 july 11 2001 sei advisor network

Investment Performance ReviewSecond Quarter 2001July 11, 2001SEI Advisor Network


Today s agenda

Today’s Agenda

  • Market and SEIPerformance Overview for 2nd Qtr

  • Recent Enhancements to SEI’s Implementation Strategy

  • Presentation of Advisor Tool Kit

  • Questions & Answers

For Intermediary Use Only. Not For Public Distribution


Market and performance overview first quarter 2001

Market and Performance OverviewFirst Quarter 2001

For Intermediary Use Only. Not For Public Distribution


Mixed signals from the us economy

Mixed Signals From the US Economy

Some Indicators

are Recessionary. . .

. . .While Others are

Far From Trouble

For Intermediary Use Only. Not For Public Distribution


Reasons to believe

Reasons to Believe

It’s tempting at times like these to expect the worst, BUT

  • The economic news remains mixed, which suggests areas of weakness and strength

  • Tax cuts and Fed rate cuts do work with a lag on consumer and business spending

  • Stock prices have rebounded, boosting consumer confidence

For Intermediary Use Only. Not For Public Distribution


Talking points

Talking Points

  • Disciplined Investing Yields Results

  • 2nd Quarter Offered Further Confirmation that SEI’s Investment Process Works

  • Tracking Errors Have Reverted to the Norm

For Intermediary Use Only. Not For Public Distribution


The rocky road to recovery

The Rocky Road to Recovery

Year-to-Date Returns as of 6/30/01 for

the Dow, the Nasdaq and the Wilshire 5000

Note: All indexes set to 100

on January 2, 2001

For Intermediary Use Only. Not For Public Distribution


2 nd quarter fund performance

2nd Quarter Fund Performance

Q2 Net Returns (%)

Return

Alpha*

Small Cap Growth

+ 23.17%

+ 5.05%

Emerging Market Equity

+ 5.71%

+ 1.81%

Emerging Market Debt

+ 0.98%

+ 4.41%

International Equity

- 0.71%

+ 0.61%

Tax-Managed Large Cap

+ 0.57%

+ 6.88%

High Yield

- 0.61%

+ 0.30%

+ 0.27%

Large Cap Value

+ 5.15%

Core Fixed Income

+ 0.45%

- 0.11%

Large Cap Growth

- 0.11%

+ 8.31%

Small Cap Value

+ 11.13%

- 0.57%

- 0.69%

International Fixed Income

- 2.67%

* Return Relative to Benchmark

For Intermediary Use Only. Not For Public Distribution


Sei portfolio performance rolling returns

SEI Portfolio Performance: Rolling Returns

2001 Q2

1 Year

2 Year

3 Year

5 Year

TAX-MANAGED

3.74

Active Tax-Managed (ATM) 60

-9.20

-1.48

3.17

3.29

Index Blended Benchmark

-8.25

0.13

3.90

5.76

-18.39

-6.24

1.82

Active Tax-Managed (ATM) 100

4.97

-16.99

-3.76

2.85

Index Blended Benchmark

INSTITUTIONAL

3.65

Institutional Growth & Income (60 / 40)

-8.83

0.93

3.57

7.75

3.36

Index Blended Benchmark

-9.00

0.46

3.66

7.58

5.65

Institutional Equity (100)

-18.89

-3.05

1.72

8.53

5.14

Index Blended Benchmark

-18.93

-3.58

1.91

8.28

DOMESTIC

Domestic Equity (100)

7.69

-15.36

-4.42

2.63

12.90

Index Blended Benchmark

7.39

-16.42

-4.50

2.63

12.29

GLOBAL

Global Equity (100)

-17.59

-4.52

2.13

11.02

5.95

Index Blended Benchmark

-18.07

-4.70

1.83

10.39

5.58

Note: Index Blended Benchmarks are gross returns, while SEI specific portfolios are net returns. Outperformance in BOLD.

For Intermediary Use Only. Not For Public Distribution


Sei portfolio performance annual returns

SEIPortfolio Performance: Annual Returns

2001 YTD

2000

1999

1998

1997

TAX-MANAGED

-3.38

Active Tax-Managed (ATM) 60

17.26

-6.65

-3.00

Index Blended Benchmark

16.41

-4.64

-7.17

-14.45

28.11

Active Tax-Managed (ATM) 100

-6.62

-11.16

26.12

Index Blended Benchmark

INSTITUTIONAL

-4.20

Institutional Growth & Income (60 / 40)

17.36

-4.40

11.88

14.05

-3.65

Index Blended Benchmark

15.74

-4.97

13.34

13.38

-8.75

Institutional Equity (100)

28.68

-12.43

14.11

20.85

-7.80

Index Blended Benchmark

25.60

-12.64

16.32

19.52

DOMESTIC

Domestic Equity (100)

-7.95

-7.48

20.47

20.51

33.19

Index Blended Benchmark

-6.36

-9.82

19.95

21.52

30.91

GLOBAL

Global Equity (100)

-9.58

24.21

20.37

25.57

-9.29

Index Blended Benchmark

-10.80

21.40

21.24

24.70

-8.13

Note: Index Blended Benchmarks are gross returns, while SEI specific portfolios are net returns. Outperformance in BOLD.

For Intermediary Use Only. Not For Public Distribution


Analysis of large cap growth performance year to date 2001 as of 6 30 01

Analysis of Large Cap Growth PerformanceYear-to-Date 2001 as of 6/30/01

Attribution (%)

  • SEI managers correctly judged industry performance. For example, overexposure to energy and underexposure to technology boosted first-half performance.

  • Stock holdings within the technology sector were at the root of the first quarter’s underperformance. In the tumultuous markets at the start of the year, investors sought shelter in some well-known technology names that our investment managers did not hold because the companies did not satisfy the managers’ investment criteria.

  • Notable deviations from the benchmark were IBM, Microsoft, Nokia and Solectron.

Stock Selection Attribution, by Sector (%)

For Intermediary Use Only. Not For Public Distribution


Analysis of small cap growth performance year to date 2001 as of 6 30 01

Analysis of Small Cap Growth PerformanceYear-to-Date 2001 as of 6/30/01

Q1 Stock Selection by Sector (%)

  • Fund performance remains extraordinarily strong.

  • Quarter-to-quarter fluctuations occasionally happen because our managers select stocks based on their long-term funda-mentals, not short-term technical factors.

  • An example of this occurred this year.

    • The Fund fell short of the benchmark in the first quarter due largely to underperformance in three sectors.

    • The Fund handily outperformed the benchmark in the second quarter thanks to gains in those same three sectors.

Q2 Stock Selection by Sector (%)

For Intermediary Use Only. Not For Public Distribution


Us tax managed large cap fund

US Tax-Managed Large Cap Fund

  • Recent Enhancements Paying Off

  • Changes were made to our tax-managed structure in an effort to maintain the tax sensitively of the Tax-Managed Large Cap Fund while delivering the opportunity for greater returns.

  • These changes are supporting positive results for the Fund:

    • Posted a +7% absolute return for the quarter

    • Outperformed its benchmark during the second quarter

    • Core-Tax Manager Parametric has capitalized on loss harvesting opportunities to enhance after-tax performance

Parametric

Core Tax-Managed

Sanford

Bernstein

Deep

Value

Equinox

Relative

Value

Peregrine

Long-term

Growth

Alliance

Core

Growth

Provident

Hyper

Growth

Fund Performance

** Pre-tax returns for

SEI Tax-Managed Large Cap Fund

# Returns from Fund inception in March 1998

For Intermediary Use Only. Not For Public Distribution


Us large cap value fund

US Large Cap Value Fund

  • Building on Positive Performance

  • Fund gained over 5% during the second quarter

  • Led the benchmark once again in Q2

    • The Fund has now led its benchmark in four consecutive quarters to generate near 5% outperformance over the last year

  • Each of our specialist value managers outperformed during the quarter

    • LSV:+ 7% return in Q2

    • Bernstein:+ 7% return in Q2

    • Iridian:+ 5% return in Q2

  • The recent addition of Deutsche as the new core manager in the Fund has already paid off:

    • Manager posted a 5% return during the quarter to exceed the benchmark.

Deutsche

Value

Iridian

Relative

Value

Sanford

Bernstein

Deep Value

LSV

Contrarian

Value

Fund Performance


Emerging market equity fund

Emerging Market Equity Fund

  • Emerging Equity Fund Rallied in Q2

  • Emerging markets continue to outperform US and International markets this year, and SEI’s Fund is outperforming its benchmark by a sizeable margin.

    • Stock selection in China, India, Korea and South Africa helped drive performance

  • Recent structural enhancements to Fund paying off

    • Dedication to value stocks through Boston Company has been beneficial, as value continues to outperform growth in these regions

    • Exposure to EMEA regions such as Israel, Russia and South Africa has also boosted returns

Nicholas Applegate

Global Growth

Schroder

Global Core

The Boston Company

Global Value

Morgan

Stanley

Latin

America

Schroder

EMEA

SGY

Asia

Fund Performance

For Intermediary Use Only. Not For Public Distribution


Review of recent portfolio enhancements

Review of Recent Portfolio Enhancements

For Intermediary Use Only. Not For Public Distribution


High yield bond fund

High Yield Bond Fund

Old Structure

New Structure

Nomura

Concentrator

Nomura

Concentrator

Credit Suisse

Core

Nicholas Applegate

Core

Shenkman

Fundamental Value

  • The Fund has posted consistent long-term positive returns that are ahead of its benchmark

  • SEI is adding Shenkman to target the Fundamental Value segment of the High Yield market. This should improve the risk and reward profiles for the Fund.

  • Process and research capacity concerns necessitated the replacement of Credit Suisse

  • Nicholas Applegate will take the reins as the Fund’s new Core manager

For Intermediary Use Only. Not For Public Distribution


Talking points1

Talking Points

  • Disciplined Investing Yields Results

  • 2nd Quarter Offered Further Confirmation that SEI’s Investment Process Works

  • Tracking Errors Have Reverted to the Norm

For Intermediary Use Only. Not For Public Distribution


  • Login